Key facts
- Cake Box reported a 9.3% rise in organic turnover to £45.9m for the year ending March.
- The company's sales were boosted by the popularity of 'ultrasound cakes' and the acquisition of Ambala.
- Pre-tax profit increased by 16.5% to £6.9m.
- Cake Box plans to open up to 35 new stores in the coming year.
- The company's shares rose 2.5% to 195p.
Cake Box, a prominent UK bakery chain, has reported a significant surge in sales, driven by the popularity of novel 'ultrasound cakes' and the successful acquisition of Ambala. The company's organic turnover increased by 9.3% to £45.9 million for the year ending March.
Chief Executive Sukh Chamdal highlighted 'ultrasound cakes,' where parents celebrate discovering their baby's sex, as a key trend, following the popularity of gender reveal cakes. The 'Dubai chocolate cake' has also been a strong performer. The acquisition of Ambala, a London-based sweet treats seller, contributed significantly to total group sales, pushing them to just under £60 million, a rise of two-fifths.
Financially, Cake Box saw its pre-tax profit climb by 16.5% to £6.9 million. The company also raised its final dividend by 5.9% to 7.2p. Looking ahead, Cake Box expanded its footprint by opening 25 new stores and 12 new Ambala stores during the year, with plans to launch as many as 35 new sites in the upcoming year. The company is also exploring the potential of combined Cake Box-Ambala store formats.
Chamdal expressed confidence in the company's ability to navigate economic pressures, noting that consumers tend to maintain spending on special occasions even during recessions. In response to the news, Cake Box shares saw a 2.5% increase, reaching 195p.